Hybrid Transshipment Policy and Ordering Model for Multiple Periods with Customer Switching Behaviour
The interaction of a hybrid transshipment policy and customer switching behaviour will exacerbate the complexity of the structure of a hybrid transshipment policy. To cope with this problem, a discrete-time dynamic programming model framework with customer switching behaviour is developed. Based on...
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| Format: | Article |
| Language: | English |
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Wiley
2021-01-01
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| Series: | Discrete Dynamics in Nature and Society |
| Online Access: | http://dx.doi.org/10.1155/2021/5996579 |
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| author | Qingren He Ranran Shi Guofeng Tang |
| author_facet | Qingren He Ranran Shi Guofeng Tang |
| author_sort | Qingren He |
| collection | DOAJ |
| description | The interaction of a hybrid transshipment policy and customer switching behaviour will exacerbate the complexity of the structure of a hybrid transshipment policy. To cope with this problem, a discrete-time dynamic programming model framework with customer switching behaviour is developed. Based on this framework, we demonstrate that the retailer can obtain more profits with a hybrid transshipment than without one. Next, the existence of a reactive and preventive transshipment policy is shown, respectively. We further analyse the structural property of the holdback policy of reactive transshipment and give the threshold of customer switching rate when always rejecting the request. Meanwhile, a dominant preventive transshipment policy is formulated by which the retailer can control the inventory regardless of the influence of the preventive transshipment policy of the other as long as the inventory is observed by developing an easy-to-implement optimal hybrid transshipment strategy. In addition, the existence of an ordering Nash equilibrium of two retailers is proven. Then, we also illustrate the existence of a transshipment area and analyse the impact of the transshipment cost and switching rate on ordering, the hybrid transshipment policy, and profit by using numerical examples. Finally, we find that the retailer is more willing to adjust inventory by ordering when there is a lower transshipment price and adjust inventory by hybrid transshipment when there is a higher transshipment price. |
| format | Article |
| id | doaj-art-c9b8dfd29c844681bcddf8f75c9aa50e |
| institution | Kabale University |
| issn | 1607-887X |
| language | English |
| publishDate | 2021-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Discrete Dynamics in Nature and Society |
| spelling | doaj-art-c9b8dfd29c844681bcddf8f75c9aa50e2025-02-03T01:21:16ZengWileyDiscrete Dynamics in Nature and Society1607-887X2021-01-01202110.1155/2021/5996579Hybrid Transshipment Policy and Ordering Model for Multiple Periods with Customer Switching BehaviourQingren He0Ranran Shi1Guofeng Tang2School of Economics and ManagementSchool of ManagementSchool of Management Science and EngineeringThe interaction of a hybrid transshipment policy and customer switching behaviour will exacerbate the complexity of the structure of a hybrid transshipment policy. To cope with this problem, a discrete-time dynamic programming model framework with customer switching behaviour is developed. Based on this framework, we demonstrate that the retailer can obtain more profits with a hybrid transshipment than without one. Next, the existence of a reactive and preventive transshipment policy is shown, respectively. We further analyse the structural property of the holdback policy of reactive transshipment and give the threshold of customer switching rate when always rejecting the request. Meanwhile, a dominant preventive transshipment policy is formulated by which the retailer can control the inventory regardless of the influence of the preventive transshipment policy of the other as long as the inventory is observed by developing an easy-to-implement optimal hybrid transshipment strategy. In addition, the existence of an ordering Nash equilibrium of two retailers is proven. Then, we also illustrate the existence of a transshipment area and analyse the impact of the transshipment cost and switching rate on ordering, the hybrid transshipment policy, and profit by using numerical examples. Finally, we find that the retailer is more willing to adjust inventory by ordering when there is a lower transshipment price and adjust inventory by hybrid transshipment when there is a higher transshipment price.http://dx.doi.org/10.1155/2021/5996579 |
| spellingShingle | Qingren He Ranran Shi Guofeng Tang Hybrid Transshipment Policy and Ordering Model for Multiple Periods with Customer Switching Behaviour Discrete Dynamics in Nature and Society |
| title | Hybrid Transshipment Policy and Ordering Model for Multiple Periods with Customer Switching Behaviour |
| title_full | Hybrid Transshipment Policy and Ordering Model for Multiple Periods with Customer Switching Behaviour |
| title_fullStr | Hybrid Transshipment Policy and Ordering Model for Multiple Periods with Customer Switching Behaviour |
| title_full_unstemmed | Hybrid Transshipment Policy and Ordering Model for Multiple Periods with Customer Switching Behaviour |
| title_short | Hybrid Transshipment Policy and Ordering Model for Multiple Periods with Customer Switching Behaviour |
| title_sort | hybrid transshipment policy and ordering model for multiple periods with customer switching behaviour |
| url | http://dx.doi.org/10.1155/2021/5996579 |
| work_keys_str_mv | AT qingrenhe hybridtransshipmentpolicyandorderingmodelformultipleperiodswithcustomerswitchingbehaviour AT ranranshi hybridtransshipmentpolicyandorderingmodelformultipleperiodswithcustomerswitchingbehaviour AT guofengtang hybridtransshipmentpolicyandorderingmodelformultipleperiodswithcustomerswitchingbehaviour |